strategies-for-international-marketing

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Globalisation, economic collaboration and marketing

Globalisation is the increasing connection and interdependence of countries through trade, communication, transport and technology
- It allows businesses to operate and compete in international markets more than ever before
Economic collaboration is when countries or regions work together to support trade and economic growth
- This includes trade agreements, shared markets, such as the EU, and international organisations, like the World Trade Organisation

Implications for marketing

Implication	Explanation
Access to larger markets	Globalisation allows businesses to sell in many countries Marketing must be adapted for different cultures, languages and customer needs
Increased competition	International trade increases competition Businesses must improve their marketing, offer better prices and be more creative with promotions and branding
Need for local adaptation	Products can be sold globally, but marketing messages often need to match local tastes and values This is called glocalisation – developing global brands with local appeal
Joint marketing opportunities	Countries working together can create shared marketing campaigns and promote across borders more easily E.g. in the EU, firms face fewer legal or language barriers

The importance of international marketing

International marketing is when a business promotes and sells its products in more than one country
It plays a key role in helping businesses grow, increase profits and compete globally

Why international marketing is important

International marketing provides access to new customer, diversifies risk, takes advantage of global trends and helps build a global brand

Access to new customers
- By marketing products in other countries, businesses can reach millions of new potential customers
  - E.g. Netflix expanded from the US to over 190 countries, gaining millions of new subscribers through localised marketing and content
Spreading risk
- Selling in different countries helps reduce risk
- If sales fall in one country, sales in other regions may still grow
  - E.g. Toyota sells vehicles across Asia, North America and Europe, which helps balance profits even if one region performs poorly
Taking advantage of global trends
- International marketing allows businesses to respond quickly to global fashion, technology or lifestyle trends
  - E.g. Zara uses fast-fashion marketing strategies across global cities to catch and promote trends in real time
Building a global brand
- International marketing helps businesses build strong global brands that are recognised and trusted around the world
  - E.g. Samsung has become one of the world’s leading technology brands by using consistent marketing messages and high-quality advertising across Asia, Europe, and the Americas

Identifying and selecting suitable international markets

Before entering a new country, a business must carefully research and choose the right market
Picking the wrong market can lead to wasted investment, while choosing wisely can bring growth and long-term success

Key factors in choosing an international market

Factor	Explanation	Example
Market size and growth	Businesses look for large or fast-growing markets to increase sales opportunities	Many global brands have entered India and Vietnam due to their large, young populations and rising incomes
Customer needs and preferences	Firms must ensure the product is wanted and may need to adapt it for local tastes, culture, or values	McDonald’s changes its menu in different countries—e.g. vegetarian burgers in India
Level of competition	Entering a crowded market can be difficult, so businesses may look for places with fewer rivals	A skincare company may enter an emerging market with fewer global beauty brands
Legal and political environment	Some countries have strict laws or unstable governments that make entry risky	Companies may avoid markets with frequent government changes or trade restrictions
Costs and infrastructure	Businesses consider transport, marketing and setup costs Good infrastructure supports smooth operations	Shopee expanded in Southeast Asia due to better internet access and delivery networks

Case Study

GreenSip Ltd makes stylish, eco-friendly water bottles aimed at environmentally conscious consumers

Five insulated water bottles in varying shades of green are lined up on a wooden table with leafy plants in the background.

The business already sells successfully across the UK and now wants to grow by entering a new international market, either in Brazil or in Sweden

Market comparison of Brazil and Sweden

Factor	Brazil	Sweden
Market size and growth	Population over 200 million with a growing middle class Strong potential for long-term sales growth	Smaller population (approx. 10 million) High income levels and strong consumer spending
Customer preferences	Sustainability awareness is increasing, but reusable products are still a new trend in many areas	Consumers are already eco-conscious and likely to support GreenSip’s sustainability message
Competition	Fewer established eco-brands, which could give GreenSip a competitive advantage	Many strong local and international eco-brands already exist, making it more competitive
Challenges and ease of entry	High import taxes and less reliable delivery infrastructure Branding may need cultural adaptation	Easy entry due to strong infrastructure EU membership (low trade barriers) Reliable digital payment systems.

GreenSip Ltd. chose to enter Sweden as its first international expansion market
- Although Brazil offered more long-term growth potential, the management team decided that Sweden was a safer first step
- The strong match between Swedish consumer values and GreenSip’s eco-friendly brand made it easier to launch with minimal changes to product design or marketing
- Additionally, as part of the EU, Sweden allowed for lower costs, faster delivery and fewer legal barriers

Entering international markets

When expanding into a new country, businesses must decide how to enter and how to market their products

Strategies for entering international markets

Pan-global strategy

A pan-global strategy is where a business uses the same product and marketing approach in all countries
- Branding, packaging and promotion stay the same
- This approach is best used when customer preferences are similar worldwide, such as in technology or fashion where global trends dominate
Advantages
- Saves money through economies of scale
  - Using the same adverts, packaging and branding worldwide reduces costs
- Strong, consistent global brand image
  - Customers recognise and trust the brand across all markets
Disadvantages
- May not suit local tastes or culture
  - What appeals in one country may not work in another
- Risk of marketing failure
  - The message might not connect with customers in certain regions

Local strategy

A local strategy is where a business changes parts of its product or marketing to suit local tastes, culture, language or laws
This approach is best used when markets are culturally, legally or economically different, such as in food, healthcare or personal care industries

Advantages
- Matches local customer needs better
  - Products and marketing can reflect local tastes, language and culture
- More likely to connect with target market
  - Customers feel the business understands them, which can increase loyalty
Disadvantages
- Higher costs due to adaptation
  - Creating different versions of adverts, packaging or products for each country can be expensive
- More complex to manage
  - Coordinating different strategies across markets requires more time, staff and control

Strategies to develop a global market

When expanding globally, businesses must choose strategies that match their goals, resources, and the markets they are entering
Key factors businesses consider include
- Target market analysis
  - Businesses study customer needs, cultural values, income levels and demand
  - Helps decide whether to use a pan-global or localised marketing approach
- Product type
  - Some products (e.g. technology, luxury goods) may work globally with little change
  - Others (e.g. food, personal care) often need local adaptation to suit customer preferences or laws
- Resources and budget
  - Larger businesses may invest in FDI or<span class=”popovers” data-content=”Where a business works with a local partner to enter the market, sharing risks, costs and local knowledge” data-title=”joint ventures” data-toggle=”popove

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